Where Investors Stand on IAMGOLD’s Transformation

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Part 6
Where Investors Stand on IAMGOLD’s Transformation PART 6 OF 7

Inside IAMGOLD’s Investor Must-Knows: Future Catalysts

Exploration opportunities

IAMGOLD (IAG) has many organic opportunities, and so the company isn’t looking for any merger and acquisition opportunities right now.

IAG CEO (chief executive officer) Steve Letwin mentioned during the company’s 3Q17 call that the opportunities for short-cycle economics are very significant, and so they’re trying to bring projects on-line very quickly and add cash flow at a very high rate of return with limited capital.

Inside IAMGOLD&#8217;s Investor Must-Knows: Future Catalysts

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Saramacca: PFS results expected in 2018

On September 5, 2017, IAMGOLD (IAG) announced a significant gold discovery at its Saramacca mine in Suriname. This property is just 25 kilometers southwest of the Rosebel mine. 

In its 3Q17 earnings call, IAG provided an update on its progress at Saramacca. The permitting work at the site is progressing well, including the environmental and social impact study. IAG expects to complete this in the first half of next year. The company is targeting the conversion of as much inferred resources to indicated resources as possible, along with expansions and discovery of potential new zones.

Other opportunities

The consolidation of additional concessions at Rosebel is also expected, and IAG is expected to make an announcement on any development in this regard soon. In addition to this, the heap leach pre-feasibility study for Essakane is expected to be completed in 2Q18.

A feasibility study for Cote is expected in the first half of 2019, with production potentially starting in the first half of 2021.

In addition to the above-mentioned projects, IAG has other exploration projects—including Boto, Sirbaya, Monster Lake, Diakha, and Nelligan—which could represent an upside potential for IAG over the long term.

Many of IAG’s peers (JNUG) (GDX) have also hiked their exploration spending after years of underinvesting. Coeur Mining (CDE), Pan American Silver (PAAS), Hecla Mining (HL), and First Majestic Silver (AG) are among the players who have stepped up their exploration games substantially.

Continue to the next and final part of this series for a look at IAG’s valuation.


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